 "Britannia Industries' net profit up 35.6% as margins expanded in Q1")
Britannia Industries' net profit in the April-June quarter of FY24 increased 35.6 per cent to Rs 457.6 crore as its profit before interest, depreciation, and tax (PBIDT) went up 34.1 per cent.
The Nusli Wadia group firm’s net sales in the quarter increased 8.6 per cent to Rs 3,969.8 crore.
The maker of Good Day and Marie Gold biscuits saw its PBIDT at Rs 745.8 crore. It was down 13.4 per cent on a quarter-on-quarter basis.
Sequentially, the company’s net profit was down 18.1 per cent and its net sales was up 2.0 per cent.
Varun Berry, executive vice chairman & managing director at Britannia Industries said in a statement that the company came out of a very successful financial year that witnessed economic recovery amidst unprecedented inflationary conditions. As a market leader, it led pricing actions to offset inflation & maintain profitability.
“In this quarter, commodity prices marginally softened & hence, the local competition intensified. In view of that situation, certain price corrections were initiated to remain competitive & continue to drive topline while maintaining profitability,” Berry said in the statement.
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Britannia Industries said it delivered a healthy revenue growth of 9 per cent on the back of robust distribution gains coupled with requisite investments in brands.
“We continued to display diligent market practices and strong on-ground execution, which also reflects in our Rural performance in an overall tepid rural demand. We delivered robust growth in our focus states as well. We launched Jim Jam Pops, which was first of its kind open cream biscuit,” Berry said.
He also said that the company has progressed well in its journey of building technologically superior factories. Its new greenfields in Tamil Nadu and Uttar Pradesh were efficiently scaled up. “With capacity and capability enhancements planned in Ranjangaon Food Park, we are well poised to further extract productivity and enhance competitiveness in these growing markets,” he added in the release.